Executive Pay Threatens Employee Engagement

Leading employee engagement specialist, Alan Crozier says, “With executive pay in the FTSE 100 companies increasing by 49%, senior executives have lost touch with reality.

Glasgow, Scotland, UK 28 October 2011. Responding to today’s announcement that executive pay in the FTSE 100 companies has increased 49%, leading employment engagement specialist, Alan Crozier says, “Senior executives are in danger of becoming (or have already become) totally removed from reality. The CEO and his executive directors make promises to shareholders and customers that rely on employees to deliver.  The executive team therefore have to be totally invested in engaging their employees to achieve the promised results. This 49% increase announcement comes at a time when many people have pay increases pegged at 2%, or no increase at all, against a background of increasing inflation.

“Some commentators are being slightly disingenuous referring to “pay” when in fact the figures reflect total remuneration: including bonuses, share schemes and pension contributions. However, that distinction is not widely understood by the people they employ, or indeed the public. That is not to defend the increase, merely to offer additional  clarity.

“People aren’t stupid: in this scenario they feel they are being used and abused. They become cynical, distrusting, and morale drops at a time when it needs to remain high. At the first opportunity, the most talented employees seek pastures new. According to the CIPD (Chartered Institute for Personnel & Development) recent survey, 22% are currently looking for a new employer. That represents a significant potential attrition cost in terms of recruitment costs, induction and training, not to mention lost knowledge and business relationships. Nearly half distrust their directors and when trust goes so does engagement – a significant driver of organisational performance. So at one end of the spectrum, those senior executives are in the personal wealth creation business. At the other, they are destroying shareholder value.”

Alan Crozier has recently joined the UK Government’s Task Force on Employee Engagement’s Guru Group, set up by the Department for Business Innovation & Skills (BIS). He is the author of the recently published book, The Engagement Manifesto. He is also a founder of The Ghost Partnership.

ENDS (background info follows)

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Bio: R. Alan Crozier

Crozier formed Q4 consulting in 2002 and in 2010 he also became a founding director of The Ghost Partnership, a company formed to bring together the experience, expertise, skills and resources of expert consultants with complementary disciplines in performance through people.

Alan Crozier has recently joined the UK Government’s Task Force on Employee Engagement’s Guru Group, set up by the Department for Business Innovation & Skills (BIS) in the aftermath of the report by David MacLeod and Nita Clarke on employee engagement and its benefits for organisations and employees.

He was previously with Watson Wyatt Partners where he was responsible for their strategic communication and employee engagement consulting capability throughout Europe.

From 1989 – 1999, Crozier was deputy practice leader for Mercer’s communication practice in the UK.

Crozier was International director of accreditation (Europe & Middle East) for the International Association of Business Communicators (IABC) 2008-2010 

He is a Fellow of the Chartered Management Institute, and an Accredited Business Communicator (the professional qualification of the IABC).

He has served on the steering board of the Corporate Identity Group and the professional advisory board of the MSc in Corporate Communication Management at Salford University

Crozier is a contributing author to:
“The IABC Handbook of Organisational Communication”, published by Jossey Bass, New York, May 2006;
“Integrating HR and Marketing Strategies”, published by ICFAI University, July 2006

Crozier has addressed conferences in Europe and North America on employee engagement, employer branding and related topics.

The Ghost Partnership

Founded in 2010 by four senior business leaders to offer a systemic approach to employee engagement to facilitate, support, and embed change; and deliver powerful and sustained business performance through people.

Organisations with engaged employees enjoy lower absenteeism, lower costs of attrition, fewer reportable accidents, less wastage, better productivity, and significantly out-perform their less engaged counterparts .

The Ghost Partnership use research-based strategies and have proven that their employee engagement methods work to deliver increased and sustained improvements:
in PLCs to boost Total Shareholder Returns;
in Mutuals, to deliver enhanced member value;
in Professional Services to boost Partner profit.

The Ghost Partners are:

Name: John Nicholson – click for profile
Position: Director

Name: Alan Crozier – click for profile
Position: Director

Name: Andrew Cooksey – click for profile
Position: Director


Name: Bill Mitchell – click for profile
Position: Operations Board



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